New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
introduction to economic
The Micro Economy Today 14th Edition Bradley Schiller, Karen Gebhardt - Solutions
3. Why would anyone sell a bond for less than its face (par)value? LO18-3
2. Why would anyone buy shares of a corporation that had no profits and paid no dividends? What’s the highest price a person would pay for such a stock? LO18-3
1. If there were no organized financial markets, how would an entrepreneur acquire resources to develop and produce a new product? LO18-2
The interest (coupon) rate on a bond is fixed at the time of issuance. The price of the bond itself, however, varies with changes in expectations (perceived risk) and opportunity cost. Yields vary inversely with bond prices. LO18-3
Bonds are IOUs issued when a company (or government agency) borrows funds. After issuance, bonds are traded in the after (secondary) market. LO18-2
Changes in the value of a corporation’s stock reflect changing expectations and opportunity costs. Share price changes, in turn, act as market signals to direct more or fewer resources to a company. LO18-4
Shares of stock represent ownership in a corporation. The shares are initially issued to raise funds and are then traded on the stock exchanges. LO18-2
Future returns are also uncertain. The expected value of future payments must also reflect the risk of nonpayment.LO18-1
Future returns on investments must be discounted to present value. The present discounted value (PDV) of a future payment adjusts for forgone interest accrual. LO18-1
Financial markets enable individuals to manage risk by holding different kinds of assets. Financial intermediaries also reduce the costs of information and search, thereby increasing market efficiency. LO18-4
The primary economic function of financial markets is to help allocate scarce resources to desired uses. They do this by providing access to the pool of national savings for entrepreneurs, investors, and other would-be spenders. LO18-4
Why do financial markets fluctuate so much?
How do the financial markets affect the economic outcomes of WHAT, HOW, and FOR WHOM?
What is traded in financial markets?
LO18-4 How risks and rewards are reflected in current values
LO18-3 Key financial parameters for stocks and bonds.
LO18-2 The difference between stocks and bonds.
LO18-1 How present discounted values are computed.
(b) How much did the judge say they deserved (per worker)?LO17-2???? ???? ???? ???? ???? ???? ???? ???? ???? ????????
(a) How much did this work out per worker?
6. In the Silicon Valley hiring case (News, p. 374), attorneys for the 64,000 plaintiffs asked for$3 billion in damages.
(c) Monopsonist’s wage rate.LO17-3
(b) Union wage rate.
(a) Competitive wage rate.
Quantity of labor demanded(workers per hour) 6 5 4 3 2 1 0 Graph the relevant curves and identify the
5. Suppose the following supply and demand schedules apply in a particular labor market:Wage rate (per hour) $4 $5 $6 $7 $8 $9 $10 Quantity of labor supplied(workers per hour) 2 3 4 5 6 7 8
Television $973,000 $973,000 Stadium gate 526,000 126,000 Luxury box seats 255,000 200,000 Concessions 60,000 12,000 Radio 40,000 40,000 Players’ salaries and costs 854,000 230,000 Nonplayer costs (coaches’ salaries) 200,000 200,000
Total Team Revenues and Costs Source of Revenue Before the Strike During the Strike
4. At the time of the National Football League strike in 1987, the football owners made available the following data:LO17-1 LO17-1 LO17-2 LO17-2
3. Based on the data in Problems 1 and 2 above,(a) What is the competitive wage rate?(b) Approximately what wage will the union seek?(c) How many workers will the union have to exclude in order to get that wage?
2. Complete the following table:Wage rate $6 $7 $8 $9 $10 $11 $12 Quantity of labor supplied 80 120 155 180 200 210 215 Marginal factor cost
(b) At what wage rate does the marginal wage first become negative?
(a) What is the marginal wage when the nominal wage is $11?
1. Complete the following table:Wage rate $14 $13 $12 $11 $10 $9 $8 $7 Quantity of labor demanded 0 5 20 50 75 95 110 120 Marginal wage
10. How will union mergers affect the market power of unions? LO17-2
9. Why did Walmart choose to close its store rather than hire 30 more workers (World View, p. 378)? LO17-2
8. Why was the 2007 UAW strike (News, p. 367, and text, p. 378) so short? LO17-2
7. In 1998 teaching assistants at the University of California struck for higher wages and union recognition, something they had sought for 14 years. How might the availability of replacement workers have affected their power?LO17-2
6. Why are farmworkers much less successful than airplane machinists in securing higher wages? LO17-2
How do you explain this? LO17-3
close to rates paid by unionized firms in the same industry.
5. Nonunionized firms tend to offer wage rates that are
4. Are large and powerful firms easier targets for union organization than small firms? Why or why not? LO17-1
3. Why do some college professors join a union? What are the advantages or disadvantages of campus unionization?LO17-1
2. Does a strike for a raise of 5 cents an hour make any sense? What kinds of long-term benefits might a union gain from such a strike? LO17-1
1. Collective bargaining sessions often start with unreasonable demands and categorical rejections. Why do unions and employers tend to begin bargaining from extreme positions? LO17-2
The impact of unions on the economy is difficult to measure.It appears, however, that they’ve increased their own relative wages and contributed to rising prices. They’ve also had substantial political impact.
To increase their power, unions are merging across craft and industry lines. In 1995 the Rubber Workers merged with the Steelworkers, the two major textile unions combined forces, and the Food Workers and Retail Clerks formed a new union. In 1999 the Grain Millers merged with the Paperworkers
The labor union movement is fully aware of these forces and determined to resist them.
The third cause of shrinking unionization is increased global competition. The decline of worldwide trade and investment barriers has made it easier for firms to import products from low-wage nations and even to relocate production plants. With more options, firms can more easily resist increased
These structural changes have combined to shrink the traditional employment base of labor unions.
The decline in unionization is explained by three phenomena. Most important is the relative decline in manufacturing, coupled with rapid growth in high-tech service industries(like computer software, accounting, and medical technology). The second force is the downsizing of major corporations and
Unions have been in retreat for nearly a generation. As shown in Figure 17.4, the unionized share of the labor force has fallen from 35 percent in 1950 to less than 12 percent today.Even that modest share has been maintained only by the spread of unionism among public schoolteachers and other
The desire of unions to establish a wage rate that’s higher than competitive wages directly opposes the MERGING TO SURVIVE
The goal of a monopsonistic employer is to hire the number of workers at which the marginal factor cost of labor equals its marginal revenue product. The employer then looks at the labor supply curve to determine the wage rate that must be paid for that number of workers. LO17-2
By definition, power on the demand side implies some direct influence on market wage rates; additional hiring by a monopsonist will force up the market wage rate. Hence a monopsonist must recognize a distinction between the marginal factor cost of labor and its (lower) market wage rate. LO17-2
Power on the demand side of labor markets is manifested in buyer concentrations such as monopsony and oligopsony.Such power is usually found among the same firms that exercise market power in product markets. LO17-2
Unions seek to establish that rate of employment at which the marginal wage curve intersects the labor supply curve.The desired union wage is then found on the labor demand curve at that level of employment. LO17-1
The downward slope of the labor demand curve creates a distinction between the marginal wage and the market wage. The marginal wage is the change in total wages occasioned by employment of one additional worker and is less than the market wage. LO17-1
Power on the supply side of labor markets is manifested by unions, organized along industry or craft lines. The basic function of a union is to evaluate employment offers in terms of the collective interest of its members. LO17-1
Power in labor markets is the ability to alter market wage rates. Such power is most evident in local labor markets defined by geographical, occupational, or industrial boundaries. LO17-1
What outcomes are possible from collective bargaining between management and unions?
How do labor unions alter wages and employment?
How do large and powerful employers affect market wages?
LO17-2 The factors that affect collective bargaining outcomes.LO17-3 How unions affect nonunion wages
LO17-1 How unions secure higher wages.
Output of grapes (in flats) 20 38 53 64 71 74 74 70(a) Illustrate the supply and demand of labor for a single farmer, assuming that the local wage rate is $6 an hour and a flat of grapes sells for $2.(b) How many pickers will be hired?(c) If the wage rate doubles, how many pickers will be hired?
10. The following table depicts the number of grapes that can be picked in an hour with varying amounts of labor:Number of pickers (per hour) 1 2 3 4 5 6 7 8
Labor supplied 20 30 40 50 60 70 80 90
Labor demanded 50 45 40 35 30 25 20 15
9. Assume that the following data describe labor market conditions:Wage rate (per hour) $3 $4 $5 $6 $7 $8 $9 $10
8. Apples can be harvested by hand or machine. Handpicking yields 80 pounds per hour;mechanical pickers yield 120 pounds per hour.(a) If the wage rate of human pickers is $8 an hour and the rental on a mechanical picker is$15 an hour, which is more cost-effective?(b) If the wage rate increased to
7. If the price of strawberries doubled, how many pickers would be hired at $4 an hour, according to Table 16.1?
6. Suppose a wage increase from $17 to $19 an hour increases the number of job applicants from 42 to 56. What is the price elasticity of labor supply?
5. (a) According to Figure 16.8, how many workers are unemployed at the equilibrium wage?(b) How many workers are unemployed at the minimum wage?
4. According to the News on page 341,(a) How many people were supplying labor?(b) How many employers were demanding labor?
A: Labor surplus B: Labor shortage C: Equilibrium
3. According to the News on page 341, what was the situation in the 2014 Atlantic City labor market?
If using The Economy Today, use the following question: Average consumer prices increase between 1990 and 2010? (See the tables at the end of the text.)
(b) If using The Micro Economy Today, use the following question: Compensation per hour increase between 1990 and 2010? (See the tables at the end of the text.)
(a) The federal minimum wage increase between September 1997 and July 2009?(See Table 16.2.)
2. By what percentage did
(b) If his average annual salary were based on home runs alone, how much would each home run be worth?
1. (a) How many home runs did Giancarlo Stanton score in 2014? (See News, p. 351).
11. Why didn’t President Obama set pay limits on baseball players who play in publicly funded stadiums? Why did he single out corporate executives? LO16-2
10. The minimum wage in Mexico is less than $1 an hour.Does this make Mexican workers more cost-effective than U.S. workers? Explain. LO16-3
9. Is it possible that the president of the United States is overpaid? How should his MRP be measured? LO16-2
8. In 2007 the president of the University of Southern California was paid $900,000 and the football coach was paid $4 million. Does this make any sense? LO16-2
7. Who is hurt and who is helped by an increase in the legal minimum wage? Under what circumstances might a higher minimum not reduce employment? LO16-3
(a) a quarterback and (b) the team’s coach? LO16-2
6. How might you measure the marginal revenue product of
5. Is this course increasing your marginal productivity? If so, in what way? LO16-2
(c) More carpenters are hired to build a house. LO16-2
(b) More professors are hired in the economics department.
4. Explain why marginal physical product would diminish as
3. According to the World View on page 344, does the substitution effect or the income effect dominate in Mexico?In Russia? Why might this be the case? LO16-1
2. Would you continue to work after winning a lottery prize of $100,000 a year for life? Would you change schools, jobs, or career objectives? What factors besides income influence work decisions? LO16-1
1. Why are you doing this homework? What are you giving up? What utility do you expect to gain? LO16-1
Why are some workers paid so much and others so little?
LO16-3 How wage floors alter labor market outcomes.
Showing 200 - 300
of 1762
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last
Step by Step Answers
Get 50% OFF
Claim Now
